Trendlines Group swings to US$3.95m profit on fair value gains of portfolio

SINGAPORE - The Trendlines Group swung to a profit of US$3.95 million for the full year ended Dec 31, 2017, from a net loss of US$6.6 million in 2016, on the back of fair value gains to its investments in portfolio companies.

Earnings per share was 1 US cent, up from a 1 US cent-per-share loss a year ago, said Trendlines, an Israel-based company that invests in technology-based companies in the medical and agricultural fields. Net asset value per share stood at 15 US cents as at Dec 31, 2017, unchanged from a year earlier.

The stock last traded on Feb 21 at 14.1 Singapore cents apiece, up 0.1 Singapore cent or 0.71 per cent.

The company raised the fair value of its portfolio to US$96.8 million at the end of 2017, up from US$83.7 million at the end of the previous year, following the completion of fundraising exercises at favourable terms to the portfolio companies and on the back of commercial and technological progress at some of the portfolio companies.

Trendlines also realised a US$2.3 million gain from the exit of two portfolio companies. The company used US$7.3 million of cash for operating activities in 2017, and held US$8.7 million of cash and cash equivalents at the end of teh year.

The group expects to reduce its operating expenses for the financial year ending Dec 31, 2018 by about US$1.3 million following a strategic review on cost reduction. Operating, general and administrative expenses stood at US$8.6 million in 2017.

Trendlines added that it will continue to explore potential exits of some of its portfolio companies to maximise shareholder value.